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Hedging Technique.

Devin

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Hedging Technique.
« on: August 02, 2011, 01:48:28 AM »

Hedging actually is a technique used to minimize, unwanted risk by opening opposite trading positions. This strategy very suitable for those people that do not want to use stop loss. Trader themself able to maintain loss amount at a constant range, that is called locking. For instance, a trader ordered Buy EUR/USD.
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Vivian Chen

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Re: Hedging Technique.
« Reply #1 on: August 02, 2011, 08:58:00 PM »
yah, hedging is a great way to reduce risk and I've use it sometimes in the stock market.
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JerryJose

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Re: Hedging Technique.
« Reply #2 on: September 07, 2011, 06:28:40 AM »
Heard some where that technically, to hedge you would invest in two securities with negative correlations. Is this true?


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Hedging Technique.